What is the best way to negotiate a fair compensation package with an influencer?

Before embarking on influencer marketing, brands must first clarify three crucial elements: what, why, and who. 1. What: Define your objectives - whether it's boosting brand awareness, increasing sales, or enhancing credibility. This clarity shapes your influencer strategy. 2. Why: Determine a compelling reason for the collaboration, rooted in your brand's story and values. This adds purpose and authenticity to your campaign. 3. Who: Select influencers whose values, audience, and niche align with your brand. Targeting the right influencer ensures engagement and a strong ROI. Without this clarity, success in influencer marketing remains uncertain. These elements lay the groundwork for a strategic and authentic campaign.

If your goal is to drive conversions through affiliate codes, negotiate a base pay + commission with your creators. If your goal is views or engagement, propose a rate that reflects a creators average viewership and engagement. In an ideal world for brands, you would pay a creator a base content creation fee up front then bonus based on performance thereafter (i.e. $30 per thousand views). However, most creators will not go for that as of today - maybe one day soon! At Crafted, we currently auto-set rates based on a creators' avg. historical viewership and show ROI on campaigns by reach. CPM is the metric that ties these two things together.

Build a custom offer for each influencer. It should be based on a variety of things such as type of content, quality, community, ability to drive action, etc. What matters to you is what you build the offer around. Once you know all about them you can build a package that leverages their strengths in creation and on which platform(s). Get your deliverables, usage, campaign needs and budget all together. Reach out to the potential influencer and ask to get on a call to talk through it all. I cannot stress enough DO NOT put your budget offer in email AND DO NOT ask influencers for their rates. You need to have the experience to assess their value for your campaign. Pro tip: be ok walking away! Don't ever overextend if it isn't worth it.

Don't do any manual homework on an influencer please lol. That would take you ages if you're running a big campaign. Ideally use a platform that does all the work for you through a solid vetted network and automation tools to set the rate for you based on fair metric and handle payouts.

If you come up with your own pricing formula and are able to execute it at scale — as clearly, succinctly, and friendly as possible — explain the method behind your price. Creators will be more open to it if they understand your rationalization and come around to it being fair, even if it is below what they typically charge.

In the realm of influencer collaboration, crafting a realistic offer is paramount. Not every influencer will readily accept a barter arrangement, nor is it prudent to splurge dollars on every campaign. Our approach emphasizes the need to strike a balance between barter and paid collaborations. It's vital to acknowledge that influencers have cultivated a dedicated following and invest their time and resources into content creation. When they advocate for your product or service, it's only fair to compensate them for their efforts. The key lies in assessing their influence and reach to determine whether they fit into the barter or paid category.

Respect is a two-way street. It's crucial to maintain a respectful approach in dealings with influencers, recognizing the effort they invest in crafting content for their audience. While their work might not always align with your schedule or be overtly visible, the quality of their content, when executed effectively, holds significant potential value for your brand.

When working on a campaign with several influencers, it is best to be as FAIR as possible when it comes to your budget. For instance, there are several reasons that creators/influencer may undersell themselves. Being transparent with your budget helps you avoid any discrepancies in pay.

I don’t think it’s fair to quote a fee which only accounts for Impressions, Views & Engagement cause Influencers are not an Ad Banner. The Audience they have built over the years is much more valuable & that influence/clout should also be a component to the pricing A plausible method is to arrive at an incentivised model which includes a base cost + Cost Per View/Engagement/Action